REPUBLIC OF UGANDA

Location: A land-locked, well-watered and richly

fertile country in East-Central Africa, bordered by

South Sudan in the north, Kenya in the east, the

United Republic of Tanzania to the south, Rwanda

to the south-west, and the Democratic Republic of

the Congo to the west. The capital city of Uganda

is Kampala, with an estimated population of 1.936

million in 2015.

Chambers/Associations:

• The Uganda National Chamber of Commerce and

Industry (UNCCI) is the oldest nation-wide umbrella

organisation for the private sector in Uganda. The

UNCCI focuses on enhancing business opportunities.

International memberships/relations: Uganda is a

member of the African, Caribbean and Pacific Group

of States, African Union, the Common Market for

Eastern and Southern Africa (COMESA), East African

Community (EAC) (a joint membership together with

Kenya, Tanzania, Burundi, and Rwanda), Non-Aligned

Movement, Organisation of Islamic Co-operation,

United Nations, Inter-governmental Authority on

Development, and the World Trade Organisation.

• The Ugandan and Russian pact to

stimulate bilateral co-operation: In May 2015,

Uganda and Russia signed the Uganda-Russia

Intergovernmental Commission on Economic,

Scientific and Technical Co-operation. Under this

agreement, the two countries aim to increase

co-operation in the economic, social, and other

spheres. The co-operation is seen as mutually

beneficial to both countries, with Uganda

benefitting from Russian technology. A Russian

company, RT Global Resources, has already

won a bid to build a USD4 billion oil refinery in

Uganda. Russia remains a key investor in Africa.

INTRODUCING COUNTRY PROFILE –

FACTS AND FINDINGS

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INTERNATIONAL TRADE

Top five export locations Top five import locations

1. Sudan (North and South) (17.0%) 1. India (24.5%)

2. Kenya (13.1%) 2. China (12.2%)

3. Rwanda (10.8%) 3. Kenya (9.8%)

4. Democratic Replublic of Congo (8.0%) 4. UnitedArab Emirates (6.6%)

5. Italy (4.4%) 5. Japan (5.8%)

Top five exported goods Top five imported goods

1. Coffee, tea, mate and spices (22.0%) 1. Mineral fuels, oils, distillation products (23.8%)

2. Mineral fuels, oils, distillation products (8.1%) 2. Vehicles other than railway, tramway (9.0%)

3. Fish, crustaceans, molluscs, aquatic invertebrates not else-

where specified (6.0%)

3. Machinery, nuclear reactors, boilers etc. (8.1%)

4. Animal, vegetable fats and oil, cleavage products, etc.

(4.5%)

4. Electrical, electronic equipment (6.2%)

5. Cereals (4.3%) 5. Pharmaceutical products (5.9%)

Source: BMI Research (ITC calculations based on Uganda Bureau of Statistics and UN COMTRADE statistics)s

2014 International trade (USD thousands)

• Total exports: USD 2 261 964

• Total imports: USD 6 073 528

UGANDA’S OPENNESS TO FOREIGN DIRECT INVESTMENT

• Uganda has liberal trade and investment policies which

create an open business environment. Many investors

are taking advantage of this, and as a result foreign direct

investment (FDI) is rising.

• Uganda remains a leading recipient of FDI in the East

African region, and many opportunities for investment exist.

• Investors are attracted by the wide array of business

opportunities available in Uganda. These range from its

abundance of natural resources such as oil, cobalt and

limestone to its increasingly wealthy consumer base.

• Investment has also been attracted to Uganda’s

telecommunications sector, power sector and untapped

mineral resources. The need for Uganda to upgrade its

power generation capabilities and its transportation

network will also create opportunities for foreign investors

in the construction sector.

• FDI in Uganda continues to be driven primarily by heavy

investments from oil exploring companies as the country

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PESTEL ANALYSIS

INTERNATIONAL TRADE

moves toward active oil production in the next couple

of years. According to the Petroleum Exploration and

Production Department, oil exploration in Uganda has

attracted $2.4 billion in FDI in the 15 years up to 2013. The

country’s recoverable reserves are estimated to be at least

3.5 billion barrels. This will place Uganda in the league of top

sub-Saharan oil producers.

• It remains important to attract enough FDI, as it will play

a key role in achieving the government’s infrastructure

development goals without pushing the fiscal deficit to

unsustainable levels.

• The country’s agribusiness, its tourism, light

manufacturing, and its expanding services sector also

create investment opportunities.

• There are many promising opportunities for businesses to

invest in the right sectors. Foreign firms should do some

research and preferably visit the country before making any

significant investment.

SOUTH AFRICA’S ALREADY ESTABLISHED ROLE IN UGANDA

• South Africa has well established business and economic

ties with Uganda. A number of South African companies

have operations in the country. These include financials

such as Stanbic Bank, telecoms companies such as MTN,

and food and drink companies SABMiller and Shoprite.

POLITICAL/LEGISLATIVE• Uganda’s constitution has been amended many

times. The latest version was adopted in

September 1995. The constitution provides for

the following:

- There is a unitary republic and a

Parliament with 375 elected members.

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- Since 2005, there has been no limit on the number of

terms a president may serve.

• The current president is Mr Yoweri Kaguta Museveni.

• Independence was achieved from the United Kingdom in

1962. Thereafter, the country experienced a great deal of

instability during the dictatorial regime of Idi Amin

(1971–1979) and the rule of Milton Obote (1980–1985).

• Yoweri Museveni has been in power since 1986. His long

tenure in the presidency and the move towards multiparty

democracy brought relative stability and economic growth

to the country. Multiparty elections were held in both 2006

and 2011.

• The president has become much less popular and has lost a

lot of political capital in recent years.

- There is concern that the dominance of President Yoweri

Museveni and his ruling National Resistance Movement

limits multiparty competition and hampers democratic

checks and balances.

- There is a possibility of increased social unrest in the

absence of political representation due to dissatisfaction

with the president’s decades of tenure

- The biggest factor undermining public support of the

president is the more than two decades of armed conflict

between the Ugandan government and the Lord’s

Resistance Army (LRA) in northern Uganda.

- The lack of a potential successor at this stage means

that the president is unlikely to face any meaningful

competition in the next general election in February 2016.

- Going forward, major challenges for Uganda include the

following:

• It will be difficult to find a suitable successor to reigning

president Yoweri Museveni.

• The growing cost of election-related spending in

the country will put more pressure on the country’s

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stretched public finances and impede fiscal integrity.

• Uganda’s vulnerability to internal instability will be

difficult to overcome. This is due to the negative

sentiments towards Museveni and his allies in Kampala,

who failed to build popular support in the war-affected

areas. The resentment caused by the abduction of

thousands of children and the resettling experiences of

those displaced during the conflict also remains fresh.

These negative sentiments will probably only be reversed

by economic development in the region.

• Border insecurity and the ongoing war in South Sudan

are having a detrimental effect on the country’s ties with

its northern neighbour. This has reduced export demand

and caused supply chain disruption.

• High levels of corruption remain a serious problem in the

country. One of the effects of this corruption is that it is

influencing the transparency of the legislative process.

ECONOMIC• Uganda is seen as a leader in making economic reform

happen. This reform has resulted in reasonably high and

stable economic growth for most of the last two decades.

• The economy showed good growth in recent years, despite

energy shortfalls and rising costs. This growth could persist

and improve in the future if the country can meet more of

its power needs. Unpredictable weather conditions remain

a key risk as sustained droughts will affect Uganda’s

agricultural outputs and electricity supplies. In recent years,

regional droughts have reduced the country’s hydropower

capacity at Jinja.

• International capital is a key driver of the country’s

economic growth. Uganda’s liberal trade and investment

policies and its pro-investment legislation have brought high

levels of foreign investment to the country.

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• Uganda Vision 2040 is a long-term plan that aims to

transform Uganda from an agrarian-based economy to

a modern and prosperous society. This plan drives the

government’s development strategy. The government’s

policy priority is to provide physical infrastructure,

especially for transport and energy. There has been some

success with the rehabilitation of the country’s railway

system and an increase in power generation capacity. These

gains have had financial implications as both the budget and

current accounts are showing widening deficits.

THE STRUCTURE OF THE ECONOMY:

- In 2014, the services sector was the largest contributor

(almost 51%) to the gross domestic product (GDP).

Industry contributed about 22% and agriculture almost

27%.

• The agriculture, forestry and fishing sector makes up

just over a quarter of the country’s GDP and is an important

employer in the country. It employs approximately 66%

of Ugandans and accounts for the bulk of export earnings.

Agriculture products include coffee, tea, cotton, tobacco,

cassava (tapioca), potatoes, corn, millet, pulses, cut

flowers, goat meat, milk and poultry.

• Uganda’s agricultural land is considered amongst the

best in Africa. Agricultural production and processing will

SECTOR CONTRIBUTION TO GDP

Source: KPMG: Uganda Economic Snapshot, Quarter 2 2015

probably remain the core of the country’s economy for the

foreseeable future.

• The heavy reliance on rain-fed agriculture means the

country is vulnerable to bad weather conditions and poor

international commodity prices. More than 60% of the

country’s exports come from the agriculture sector, so a

poor harvest will weaken export revenues significantly.

• The performance of the country’s industrial sector is

dominated by construction. This is primarily the result of the

large infrastructure investment by government. The country

has an urgent need for infrastructure improvements,

especially in roads and power.

• The industrial sector includes the mining and quarrying,

manufacturing, electricity, water, and construction sub-

sectors.

• While Uganda’s mining sector holds substantial potential,

it remains largely underdeveloped. Oil production is

expected to start within the next few years. This is bound to

have a positive impact on the country’s economy. Uganda is

keen to attract investment in its mining sector. Taxes were

therefore removed in April 2015 on emerging oil, gas, and

mining exploration industries during the investment phase

of projects. The tax burden on exploration companies can

be as high as 39%, which will increase costs in an already

highly capital-intensive sector. In June 2015, the president

announced the discovery of deposits of minerals that

include clumbite-tantalite, cobalt, copper, tin and gold.

• Mineral resource deposits include uranium, copper, cobalt,

limestone, salt, gold and iron ore.

• The manufacturing sector’s performance is undermined

by electricity and other infrastructure issues. Still, there

are significant opportunities to grow the sector. The focus

here is on the manufacturing of products such as plastic

goods and consumer goods for the growing middle class in

Industry, 22.4%

Services, 50.7%Agriculture, 26.9%

Uganda, and exports to regional markets. There has been

significant foreign investment in the past few years in the

beverage industry, with Coca Cola, Pepsi, SABMiller and

East African Breweries leading the way.

• The services sector is the star performer of the Ugandan

economy. This sector is the largest contributor to the

country’s GDP and the driving force behind Uganda’s strong

GDP growth performance. The services sector accounts for

more than half of the economy’s output.

• Types of service: Trade and repairs, transport and

storage, accommodation and food service, information

and communication, financial and insurance, real

estate activities, professional, scientific and technical,

administrative and support services, public administration,

education, human health and social work, arts,

entertainment and recreation, other service activities, and

activities of households.

• The transport, telecommunications and financial services

sub-sectors have shown strong growth performance in

recent years.

• Uganda’s banking industry has grown and currently

consists of 25 banks. Still, the country’s financial services

have become more efficient with the presence of several

international banks such as Citibank, Barclays and Standard

Chartered.

• Uganda’s growing population and the increasing

urbanisation of the population create significant

opportunities for expansion in the retail sector.

• In addition, Uganda’s tourism is a growing industry and an

earner of foreign exchange for the country. In 2013, there

were 1 206 000 tourist arrivals. The country boasts many

worthwhile tourist attractions, of which mountain gorilla

trekking in the Bwindi National Parks is quite unique.

• Uganda’s economy is expected to experience strong

growth over the next few years, although risks persist.

- Stronger growth will be supported by the consumer

Economic growth (%)

2014 2015(f) 2016(f) 2017(f) 2018(f) 2019(f)

Economic Intelligence Unit (EIU)(1) 4.0 5.0 5.5 6.3 6.8 6.6

– Agriculture 2.9 2.4 1.5 2.0 2.1 1.4

– Industry 5.2 5.5 6.2 6.9 7.2 7.6

– Services 2.7 5.9 6.8 7.4 8.2 8.0

BMI Research(e) (2) 5.5 5.6 5.7 5.7 5.5 6.1

Inflation (%)

EIU (Year-on-year average) 5.1 10.1 7.3 6.3 4.9

BMI Research(e) (Year-on-year average) 4.3 4.4 7.0 7.0 7.0 7.0

Central bank policy rate (%)

BMI Research(e) (end of period) 11.00 15.00 12.00 11.00 11.00 10.00(f): forecasted; (e): estimateSources: (1) EIU: Country Report, generated 25 November 2015; (2) BMI Research: Uganda Country Risk Report Q3 and Q4 2015, 1 October 2015

ECONOMIC GROWTH: CURRENT VS OUTLOOK

• Challenges/opportunities to consider:

- Uganda is vulnerable to current energy shortages.

The country will have to upgrade its power generation

capabilities and its transportation network. The

Ugandan government has emphasised the

strengthening of the country’s transport, energy and

communication infrastructure as a priority. There

are opportunities to bid on government tenders

for donor-supported infrastructure and other

development projects.

- Opportunities remain for investment

in the country’s telecommunications

sector and major capital investment projects to

develop infrastructure. It is especially the energy and

transport sectors that will benefit from this investment.

Hydropower will be a key pillar of the plan to tackle

the country’s electricity shortcomings. There will also

be major expenditure on roads, railways and bridges.

Chinese funding will play a critical role in the roll-out

of the ambitious long-term infrastructure plans of the

Ugandan government.

- The country has been successful in diversifying its export base, especially horticulture and tobacco. It has also managed to improve trade links throughout the region. These two factors should further support economic growth in the future.

• In the shorter term, the country faces some problems that could bring lower economic growth. These include the sharp currency depreciation, leading to rising inflationary pressures from imports and tighter monetary conditions. More inflationary pressure will come from uncertainty about how the current El Niño will affect crops and therefore food prices, together with the planned increases in electricity and water tariffs.

The central bank’s tight monetary policy stance should, however, gradually lead to an easing in the inflation.

SOCIAL• Population: The country has an estimated 37 101 745 people

(2015 estimate), reflecting growth of 3.24%.

• The population is young. The working-age population makes

up almost half of the population, that is, around 18.5 million.

• Rapid urbanisation is just beginning in cities throughout

the country. Currently, only 18% of the population live in

cities and towns. The rest live in rural areas. The World

Bank projects that Kampala will become a megacity of more

than 10 million people by 2040. This projection is based

on expected social and economic development, which

translates into urbanisation. Other Ugandan cities will also

experience a demographic explosion.

• Education and health:

- Public spending on health and education makes up a

small percentage of GDP (2% and 3%, respectively, in

2012).

- Formal health facilities are mostly provided by non-

governmental organisations.

- The main causes of death among adults are Aids-

related illnesses, tuberculosis, malaria and illnesses

related to maternity. Among children it is malaria,

pneumonia and diarrhoea. The Ugandan government

runs a comprehensive Aids information campaign for the

general public.

- When travelling to the country, it is recommended that

precautionary measures be taken for cholera, diphtheria,

hepatitis A, hepatitis B, malaria, meningococcal,

meningitis, rabies, schistosomiasis (bilharzia), typhoid

and yellow fever. The World Health Organisation has

recommended vaccination against yellow fever.

- Both primary and secondary schooling is free. However,

the public schooling system is under-resourced

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sector, power sector and untapped mineral resources.

There are also investment opportunities in the

agribusiness, construction, tourism, transportation, light

manufacturing (including household consumer goods,

cosmetics/toiletries, footwear, furniture, textile fabrics,

office products and equipment), and oil infrastructure

and services sectors. The country’s expanding services

sector has created new investment opportunities for

smaller investors in financial services, information

technology, catering and entertainment.

- A weaker crude oil price environment has mixed

implications for the country:

• Currently, Uganda is a net importer of oil. Fuel makes up

over 20% of the country’s import bill. Uganda has plans

to become an oil producer in the future.

• Falling crude oil prices could be beneficial to the Ugandan

consumer and the country’s industry and economy. A

lower price environment could, however, hurt investors’

interest in the country’s oil sector and even dampen

interest in the upcoming licensing rounds.

- The country’s external sector is suffering as a result of

the ongoing insecurity in South Sudan, a key consumer

of Ugandan goods. Another negative is the declining

revenues from the country’s main goods export and

foreign exchange earner – coffee. Stagnating production

growth and weak prices are the main culprits and are

expected to persist.

- The Ugandan monetary authorities will maintain a

tight monetary policy stance. This is due to continued

currency weakness and resultant core inflation, as well

as concerns over a surge in pre-election spending in the

run-up to the election in February 2016.

- Uganda is still highly dependent on foreign aid.

Decreasing this dependence will be a major challenge.

and teacher absenteeism means 40% of classes

are cancelled. The quality of education for primary,

secondary and tertiary students is therefore poor, which

creates frustrations for investors in the country.

- Uganda has various tertiary education institutions.

• Challenges/Opportunities to consider:

- The liberalisation of the economy under Museveni

resulted in a period of rapid and stable economic growth.

This led to the emergence of an increasingly educated

and socially conscious middle class.

- Uganda has one of the fastest-growing and most youthful

populations in the world. The country’s population is

expected to double by 2035.

• The growing population will have benefits in the form of an

expanding consumer market, a large working-age labour

pool, a declining dependency ratio and expenditure on age-

related welfare. But it will also bring about challenges.

• These include the need to expand and improve the

country’s infrastructure and to grow the economy fast

enough to accommodate the expanding labour force. The

country’s rapidly growing population will put strain on social

services, infrastructure and land resources.

- Inadequate human resources remains a key obstacle for

investors in Uganda and for the economic development

of the country.

TECHNOLOGYThe Ugandan government has introduced policy to adopt and

improve information and communication technologies (ICTs).

This forms part of its obligation to ensure better service

delivery and improve cost-effectiveness and efficiency in the

economy. It will also help the country showcase itself as a

destination for investors.

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Due to the lack of widespread Internet access, e-commerce

is still relatively under-developed in Uganda. The country is

currently implementing ICT-related initiatives in the following

areas:

• e-Infrastructure

• e-Government

• Technology-enhanced learning

• e-Health

• e-Commerce, and

• ICT for rural development and entrepreneurship.

e-Government project: The national backbone

infrastructure and electronic government infrastructure

(EGI)

• Uganda has developed a five-year e-governance master

plan in partnership with a South Korean group. This US$100

million public-private partnership complements private

sector initiatives to relieve the acute shortage of bandwidth

in three phases.

• The Ugandan government is currently building out its

national data transmission backbone infrastructure (NBI).

The NBI will extend high-speed broadband services across

the country at reasonable rates. This will enable essential

business functions such as video conferencing.

• The NBI will support the roll-out of an e-government

infrastructure (EGI) project that includes e-education

and e-health programmes. The EGI is designed to reduce

the cost of doing business in government, improve

communication between government agencies and

reduce the need for officials to commute for meetings,

thereby increasing efficiency. The project will develop a

national data centre and shared services for all ministries,

departments and agencies that are currently operating

independent IT platforms with no interoperability.

• It is envisaged that the EGI project will help to raise the

country’s e-governance rankings and streamline business

operations. Currently, e-governance infrastructure is very

weak.

• Uganda’s National Information Authority (NITA-U) recently

launched a one-stop web portal, dubbed eCitizen, for

its citizens and other individuals to access government

services. The portal simplifies access to online services

offered in government ministries, departments and

agencies. The portal allows access to various services such

as e-tax, business registration, trading license registration

and social security statements. Users will be able to make

online payments via the website using credit cards, mobile

money or funds transfers from a bank. They will also be able

to apply for services and monitor progress online.

Telecommunication services

• The country’s telecommunications sector boasts some

internationally owned operators that include MTN (South

Africa), Uganda Telecom Limited (Libya), Airtel (India),

Africell (Lebanon) and Smile (South Africa). Mobile

cellular services are increasing rapidly. A big proportion of

subscribers have multiple SIM cards. There are not enough

main lines yet.

• Since 2008, banks have allowed mobile phone banking.

Mobile money has become increasingly popular and is

seen as a competitor of mainstream banks. Unfortunately,

regulations are weak and many scam artists use mobile

money to defraud their victims.

• Mobile phone coverage extends to all main towns, but public

phones are also available in most towns. Internet cafes are

found in most large towns.

• The rapidly expanding use of cellular telephones and

computers in Uganda presents opportunities for telephone

or internet marketing.

ENVIRONMENTUganda has a rich variety of wildlife. Its 7 200 km2 of national

parks and game reserves boast an extraordinary diversity

of lakes, swamps, dense grassland, woodland, rolling plains,

forests and mountains.

Significant environmental issues in Uganda include the

draining of wetlands for agricultural use; overgrazing; soil

erosion and deforestation; water hyacinth infestation in Lake

Victoria; and widespread poaching.

Uganda is party to international agreements on biodiversity,

climate change (including the Kyoto Protocol on Climate

Change), desertification, endangered species, hazardous

wastes, law of the sea, marine life conservation, ozone layer

protection, and wetlands.

OPERATIONAL RISKS/BARRIERS TO DOING BUSINESSThe growth and development across Africa have attracted

foreign investment and many multinational companies to the

continent. Yet it has to be said that doing business or operating

in African countries also holds many risks.

The following are some of the potential risks facing

investors operating in Uganda:

• The country’s infrastructure is weak, particularly as regards

to energy, water and transport – elements that are very

important in terms of supporting economic activity.

• There are various challenges with the legislative process in

Uganda:

- There are high legal risks with regard to contract

enforceability, property ownership and the enforcement

of intellectual property rights. Trade in counterfeit goods

is widespread.

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- Corruption is a serious problem and the political will to

fight it remains inadequate. Despite legal interventions to

fight corruption, the judicial institutions and enforcement

are weak. Corruption drives up costs for business

and complicates business operations. This presents a

significant risk to investors.

- Since 2011, the Uganda Investment Authority (UIA) is

reviewing business licensing applications more critically.

Capital expenditure is a precondition for foreign business

licensing, and licensees are required to invest a minimum

of USD100 000 over three years in their projects.

- In Uganda it takes 32 days to open a business. The

process involves 15 procedures, and the registration fee

amounts to USD1030, or 64.4% of per capita income.

In a regional context, the cost of starting a business is

regarded as high.

- The process of registering a business or property and

obtaining permits is complicated. There are many delays

and high costs for investors.

- Construction permits are issued relatively quickly (within

154 days), but the cost of obtaining a construction

permit in the country is not competitive. The total cost of

obtaining a construction permit averages UGX8.5 million

(or approximately USD3 400).

- A major risk to investors in Uganda relates to property

rights. In Uganda, getting title deeds on land is

problematic. Under the Land Act of 1998, foreign

businesses cannot own land in Uganda. However,

there are certain incentives that investors can use

to gain leaseholds or outright ownership, such as by

incorporating local companies.

- The legal provisions and enforcement of intellectual

property rights are still weak. It is important to know

that there is no concrete national policy on intellectual

property rights in the country.

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- While some companies have suffered from locally

produced counterfeits, most counterfeit and pirated

goods are imported from China and India. Counterfeit

pharmaceuticals and agricultural chemicals from these

two countries are becoming more problematic.

• National security is under threat, with terrorism presenting

the biggest risk.

- Weak border controls make it easy for terrorist groups

and criminals to move in and out of the country without

any restrictions. Somalia’s al-Shabaab has named

Uganda as a target for further terrorist attacks.

- There is a risk of interstate conflict in the region. A

breakdown in relations with Sudan and the Democratic

Republic of Congo poses the highest risk.

- Crime rates are rising. Law enforcement is severely

hampered by corruption within the police force.

• The labour force is characterised by low educational

levels, poor basic skills and low productivity. This remains

a frustration to investors in Uganda. The country’s labour

market also reflects high union membership. Industrial

action is common, which poses a risk in terms of work

interruptions and lost productivity.

OPPORTUNITIES FOR DOING BUSINESSIn contrast, there are many opportunities that could make

investment in Uganda a viable option. The following potential

opportunities and benefits create a business environment in the

country that could lure investors to operate in Uganda:

• Uganda offers investment incentives for investors in four

priority sectors: information and communication technology;

tourism; value-added agriculture; and value-added

investments in mineral extraction.

• The Ugandan government promotes favourable trade and

investment policies. Its diversification efforts are creating

more opportunities for investors, making the country a more

attractive market to do business in within the region.

- Under Ugandan law, foreign investors can take 100%

ownership of a company. Foreign participation is allowed

in any sector of the economy, except defence.

- Investment incentives include ten-year tax holidays, VAT

deferments, tax deductions and exemptions, depreciation

allowances, capital allowances, and land allocations.

- Businesses do not have to invest a minimum amount of

capital when opening a business. This is to the benefit of

investors with limited capital available, and encourages

entrepreneurship.

• Uganda is expected to begin with domestic oil production

within the next few years. Some analysts are expecting it

to happen as soon as 2018. This will reduce the country’s

dependence on fuel imports and increase the country’s

export values.

• There are no restrictions on joint ventures with local

investors.

• A big and largely unregulated labour market benefits

employers and guarantees the following:

- Companies have considerable flexibility in determining

annual leave, working hours and salaries.

- A very low national minimum wage makes the costs of

employment in the country very low.

- Ugandan policies on hiring foreign workers are relaxed

and inexpensive. The fees for an annual work permit vary

by sector and worker qualification. Fees are as low as

USD250 or as high as USD1 500 for an investors’ permit.

Work permits can be issued for up to five years and may

be renewed every three years.

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SOURCES:

• ALN

• BMI Research

• Central Intelligence Agency (CIA) World Fact Book

• Economic Intelligence Unit (EIU)

• IST Africa https://www.ist-africa.org

• KPMG (NKC African Economics)

• The Commonwealth Yearbook 2015 http://

thecommonwealth.org/our-member-countries/uganda

• Transparency International, Corruption Perceptions Index

2014

• Uganda Bureau of Statistics (UBOS)

• Uganda Ministry of Information and Communications

Technology

• United States of America Department of Commerce: Doing

business in Uganda: 2014 Country Commercial Guide for US

Companies

• Who Owns Whom

• Wikipedia

• World Bank (www.worldbank.org)

- A large working-age population means there is an ample

supply of workers to support unskilled manufacturing and

agricultural tasks.

Uganda has many challenges; however, promising opportunities

exist for well-prepared businesses in specific sectors. We

advise that foreign investors interested in Uganda should visit

the country before making any significant investments. A

viable option for foreign investors or businesses that intend to

enter the Ugandan market is that of joint ventures with local

or regional businesses. This will allow foreign investors to take

advantage of local and regional expertise while sharing some of

the risks with the local firms.

SBSA 222205 – 12/15